RRL has released its annual reserves and resources update. Reserves declined marginally from 3.6moz to 3.5moz, as mine depletion offset additions at both Duketon South and Tropicana. Resources also fell slightly from 7.02moz to 6.96moz, with mine depletion largely offset by a significant addition to underground resources at Duketon South. We have adjusted our production forecasts for RRL to account for the updated reserve and resource estimates, which has resulted in a modest reduction to total production over the FY25-FY30 period. Changes to earnings are mixed due to variances in grade profiles from our previous assumptions, and increases in mining costs, reflecting ongoing industry cost pressures. We reiterate our HOLD rating on RRL, lowering our price target by 13% from A$2.30 to A$2.00, with the drop in our price target reflecting reduced resource value and the fall in spot gold prices.
To access the full report please log in under the Client Area at the bottom of this page.
Argonaut’s Client Area allows you to view delayed share prices, access Argonaut’s wealth of Research as well as create custom portfolios and set up company watch lists.
If you would like to access our research please contact us to create an account.
